Back to top

Analyst Blog

We reiterate our Neutral recommendation on Quicksilver Resources Inc. (KWK - Analyst Report). Currently, the oil and gas exploration and production operator holds a Zacks Rank #3 (Hold).

Why the Reiteration?

Quicksilver Resources’ first quarter 2013 results were disappointing as low realized prices kept revenue at a weak level. Production also slipped 5.2% year over year due to decline in drilling activities.

Meanwhile, Quicksilver Resources has turned its focus on its Canadian operations. The company's initiative in the expansion of its downstream operations in the Horn River play in Canada to access the markets of British Columbia from the West Coast will boost prospects.

However, Quicksilver Resources is subject to regulatory laws which are expected to present significant cost challenges. Going forward, reliance on third parties for marketing the production would further pose significant constraints on Quicksilver’s operations.

The company tries to control operating costs and strengthen its balance sheet through refinancing and extending its debt maturities and reducing interest cost.

Although, Quicksilver Resources missed our earnings estimates in the last four quarters, the successful completion of an exploration agreement with Royal Dutch Shell plc. (RDS.A - Analyst Report) might revive its earnings.

Furthermore, if the company fails to add economically viable reserves to its resource basket, Quicksilver’s operations and financials might be affected. Considering these fundamentals, we have a modest outlook on Quicksilver Resources.

Other Stocks to Consider

Other oil and gas operators that look promising are Zacks Rank #1 (Strong Buy) Abraxas Petroleum Corporation (AXAS - Snapshot Report) and EPL Oil & Gas, Inc. .

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%